Question

Question

1
Question
2
A)
In the circular flow diagram, what do households receive from factor markets?
(1 point)
goods and services
factors of production
revenue
income
A)
In what form do households receive income from labor within a resource market?
(1 point)
profit
interest
wages
rent
Question
3
A)
As the price of a good or service increases, consumers will purchase a lower quantity of thatgood or service due, in part, to the fact that consumers cannot afford the same quantity of a goodor service at a higher price. This concept is known as the _____.
(1 point)
income effect
substitution effect
inflation
ceteris paribus effect
Question
4
A)
Use the image to answer the question
.
What is the elasticity of demand for peanut butter when the price changes from $2.00 to $0.40 asshown by this supply and demand curve?
(1 point)
0.2
0.5
5
0.004
Question
5
Question
6
A)
An increase or decrease in which of the following factors would cause a shift in the demandcurve for a given good? Select the two correct answers.
(1 point)
number of sellers
price of the good
input prices
price of related goods
income
A)
In a hypothetical country, the population is expected to increase by
\(25\%\)
following recentlegislation relaxing the barriers that restrict immigration. It is expected that the new immigrants willpurchase the same goods and services as the current population does. If all other economicforces are held constant, how would this increase in population influence demand?
(1 point)
a movement upward along the demand curve
shift the demand curves for all goods and services to the left
shift the demand curves for all goods and services to the right
a movement downward along the demand curve
Question
7
A)
Which of the following satisfy the law of supply? Select the two correct answers.
(1 point)
An increase in price is followed by an increase in quantity supplied.
An increase in price is followed by an increase in supply.
A decrease in price is followed by a decrease in supply.
A decrease in price is followed by a decrease in quantity supplied.
A increase in price is followed by a decrease in quantity supplied.
Question
8
A)
Choose the statement that correctly describes elasticity of supply for firms over the short run orlong run.
(1 point)
Over the long run, the elasticity of quantity supplied by firms tends to be more like the graph on the
left.
Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the
left.
Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the
right.
Over the short run, the elasticity of quantity supplied by firms tends to be like both graphs.
Question
9
A)
Use the table to answer the question.
Number of Workers
Output (thousands)
Fixed Cost ($)
Variable Cost ($)
10
3
2000
100
20
5
2000
200
30
6
2000
300
What is the marginal cost of increasing production from 5,000 units to 6,000 units?
(1 point)
\(\$0.43\)
\(\$0.10\)
\(\$100\)
\(\$300\)
Question
10
Question
11
A)
Use the table to answer the question.
Number of Workers
Output
Total Cost ($)
Total Revenue ($)
1
40,000
50,000
400,000
2
48,000
100,000
480,000
3
52,000
150,000
520,000
Calculate the marginal product of labor associated with hiring a third worker.
(1 point)
370,000
4,000
40,000
50,000
A)
A government official proposes taxing producers of plastic grocery bags at 10 cents per plasticbag. What effect would the tax have on the market for grocery bags?
(1 point)
Supply would increase.
Supply would decrease.
Demand would decrease.
Demand would increase.
Question
12
Question
13
A)
Baseball cards are considered to be a normal good. This means that, as incomes rise,consumers are willing and able to purchase greater quantities (more) of baseball cards. Howwould an increase in incomes be modeled in a graph of the supply and demand curves forbaseball cards?
(1 point)
The equilibrium point would move downward along the supply curve because of a drop in demand.
The supply curve would shift to the right.
The supply curve would shift to the left.
The equilibrium point would move upward along the supply curve because of an increase in
demand.
A)
Movie tickets and popcorn are complementary goods. The price of corn, a good used in theproduction of popcorn, has fallen in price. Simultaneously, the rise of at-home streaming serviceshave led movie theaters to decrease the amount of movies they offer. What is the result of thesetwo events on the market for movie tickets?
(1 point)
The market equilibrium quantity of movie tickets will definitely fall.
The market equilibrium price of movie tickets will definitely fall.
The market equilibrium price of movie tickets will definitely rise.
The market equilibrium quantity of movie tickets will definitely rise.
Question
14
Question
15
A)
A set of collectible dolls was very popular during the holiday season, but, as is the case withmany toy fads, has dropped off significantly in the following months. A surplus of dolls now linesthe shelves of retailers across the country. In the absence of government intervention, what islikely to occur?
(1 point)
The low price brought about by a decrease in demand will incentivize producers to decrease the
quantity of dolls supplied to the market.
The high price brought about by an increase in demand will incentivize producers to decrease the
quantity of dolls supplied to the market.
The low price brought about by a decrease in demand will incentivize producers to increase the
quantity of dolls supplied to the market.
The high price brought about by an increase in demand will incentivize producers to increase the
quantity of dolls supplied to the market.
A)
Which of the following is generally true of a competitive free market economy?
(1 point)
It can run itself without the intervention of government.
It depends on government intervention to run effectively.
It requires a planning commission to set prices.
It needs assistance to find its own equilibrium.
Question 16
A market with significant barriers to entry
and a small number of price-setting firms.
A market with no barriers to entry and a
large number of price-taking firms.
A market with significant barriers to entry
and a single price-setting firm.
A market with no barriers to entry and a
large number of price-setting firms.
A)
Match the definition with the type of market structure.
Drag each item to the correct location.
(2 points)
 monopoly  oligopoly  monopolistic competition  perfect competition
Question
17
Question
18
A)
The highest degree of product differentiation is found in which of the following type of marketstructure?
(1 point)
perfect competition
oligopoly
monopolistic competition
monopoly
A)
Which agency ensures the safety of all vaccines released to the public?
(1 point)
Food and Drug Administration (FDA)
Department of Justice (DOJ)
Centers for Disease Control (CDC)
National Institute of Health (NIH)
Question
19
A)
How do consumer protection laws ensure protection against unfair business practices?
(1 point)
by regulating how businesses engage with consumers
by dictating what businesses produce
by allocating scare resources to businesses equally
by deregulating businesses consumers give good reviews
Question
20
A)
In one to two sentences, describe one advantage and one disadvantage for a business when itreceives a loan.
(2 points)
    
Short Answer Rubric (2 points)
PointsAwarded
Criteria
2
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
1
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.
Question
21
A)
In one to two sentences, explain where a surplus would exist on a graph of supply anddemand.
(2 points)
    
Short Answer Rubric (2 points)
PointsAwarded
Criteria
2
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
1
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.
Question
22
A)
Price controls on rents are frequently implemented by governments in an effort to protectrenters from high housing prices. Differentiate the type of price control used from other potentialprice controls, and then formulate reasons as to why governments should be careful whenimplementing these types of controls.
(4 points)
    
Short Answer Rubric (4 points)
PointsAwarded
Criteria
4
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
3
The answer is mostly clear.
The answer is supported by mostly relevant details.
There are a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
2
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
1
The answer is not clear.
There are few or no supporting details.
There are many errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.
Question
23
A)
In one to two sentences, identify one way monopolistic competition and monopoly marketstructures are the same and one way they are different.
(2 points)
    
Short Answer Rubric (2 points)
PointsAwarded
Criteria
2
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
1
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.
Question
24
A)
List the major antitrust acts of the United States. Explain why each act was created, whether itwas effective or ineffective, and what each act did regarding fighting monopolies and creating faircompetition.
(4 points)
    
Short Answer Rubric (4 points)
PointsAwarded
Criteria
4
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
3
The answer is mostly clear.
The answer is supported by mostly relevant details.
There are a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
2
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
1
The answer is not clear.
There are few or no supporting details.
There are many errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.

Answer 1

Here are the answers to the questions you provided:

Question 1

A) What do households receive from factor markets?

• Answer: income

Question 2

A) In what form do households receive income from labor within a resource market?

• Answer: wages

Question 3

A) As the price of a good or service increases, consumers will purchase a lower quantity of that good or service...

• Answer: income effect

Question 4

A) What is the elasticity of demand for peanut butter when the price changes from $2.00 to $0.40?

• Answer: 5

Question 5

A) Select the two correct answers for a shift in the demand curve.

• Answers: price of related goods and income

Question 6

A) How would the increase in population influence demand?

• Answer: shift the demand curves for all goods and services to the right

Question 7

A) Which of the following satisfy the law of supply?

• Answers: An increase in price is followed by an increase in quantity supplied. and A decrease in price is followed by a decrease in quantity supplied.

Question 8

A) Which statement describes elasticity of supply for firms?

• Answer: Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the left.

Question 9

A) What is the marginal cost of increasing production from 5,000 units to 6,000 units?

• Answer: $100

Question 10

A) Calculate the marginal product of labor associated with hiring a third worker.

• Answer: 4,000

Question 11

A) What effect would the tax have on the market for grocery bags?

• Answer: Supply would decrease.

Question 12

A) How would an increase in incomes be modeled in a graph of the supply and demand curves for baseball cards?

• Answer: The equilibrium point would move upward along the supply curve because of an increase in demand.

Question 13

A) What is the result of the two events on the market for movie tickets?

• Answer: The market equilibrium quantity of movie tickets will definitely fall.

Question 14

A) What is likely to occur in the absence of government intervention with a surplus of dolls?

• Answer: The low price brought about by a decrease in demand will incentivize producers to decrease the quantity of dolls supplied to the market.

Question 15

A) Which of the following is generally true of a competitive free market economy?

• Answer: It can run itself without the intervention of government.

Question 16

A) Match the definition with the type of market structure.

• Answer:
  • Monopoly: A market with significant barriers to entry and a single price-setting firm.
  • Oligopoly: A market with significant barriers to entry and a small number of price-setting firms.
  • Monopolistic competition: A market with no barriers to entry and a large number of price-taking firms.
  • Perfect competition: A market with no barriers to entry and a large number of price-taking firms.

Question 17

A) The highest degree of product differentiation is found in which market structure?

• Answer: monopolistic competition

Question 18

A) Which agency ensures the safety of all vaccines?

• Answer: Food and Drug Administration (FDA)

Question 19

A) How do consumer protection laws ensure protection against unfair business practices?

• Answer: by regulating how businesses engage with consumers

Question 20

A) Advantage and disadvantage for a business when it receives a loan:

• Answer: An advantage of receiving a loan is that it enables a business to invest in growth and expansion without owning all the capital upfront. A disadvantage is that the business incurs debt, which requires consistent payments, potentially straining cash flow.

Question 21

A) Where would a surplus exist on a graph of supply and demand?

• Answer: A surplus exists above the equilibrium price on a supply and demand graph, where the quantity supplied exceeds the quantity demanded.

Question 22

A) Differentiate types of price control and why governments should be careful with them:

• Answer: Price ceilings (like rent controls) prevent prices from rising above a certain level to help consumers, while price floors set a minimum price (like minimum wage). Governments should be careful when implementing these controls because they can lead to unintended consequences such as shortages or surpluses in the market.

Question 23

A) Identify one similarity and difference between monopolistic competition and monopoly:

• Answer: A similarity between monopolistic competition and a monopoly is that both market structures have some degree of market power allowing them to influence prices. A difference is that monopolistic competition consists of many firms competing with differentiated products, while a monopoly has only one firm that controls the entire market.

Question 24

A) List major antitrust acts and their effectiveness:

• Answer:
  1. Sherman Antitrust Act (1890): Created to combat monopolies and promote competition; effective in breaking up major companies.
  2. Clayton Antitrust Act (1914): Expanded the scope of antitrust laws by prohibiting specific practices like price discrimination; somewhat effective but required more enforcement.
  3. Federal Trade Commission Act (1914): Established the FTC to prevent unfair competition; effective in regulating larger firms and enforcing antitrust laws.

Feel free to ask for any further clarification or any additional questions you may have!